Readers may be familiar with Yann Umbricht, this month’s guest editor. The PwC head of treasury was Association of Corporate Treasurers (ACT) President 2015–16. Over three decades at PwC he has seen plenty of changes in the treasury world. Here, he tells The Treasurer what he believes lies ahead.
You are absolutely right. In my view, treasurers have a critical role to play in an ever more complex world where global issues interact with each other and cannot be addressed in isolation. Business partnering has become a reality for many, but to be better able to focus on this strategic role treasurers need to secure investment in technology and people to both support them and enable their day-to-day operations to run smoothly.
The business value created by addressing treasury challenges in a more connected way, looking beyond just the treasury function, became increasingly clear to financial leaders during the COVID-19 crisis. This put treasurers in a position to build goodwill and secure this more strategic role. As an example, many organisations have announced net zero targets which they aim to achieve through business change and in some cases via the acquisition of carbon certificates. Treasurers are often playing a leading role in such initiatives given their role and skill set.
I believe that treasurers will have to be even more forward-looking, transparent, resilient, inclusive and prepared for any eventualities if they are to succeed. An ability to build strong relationships both internally and externally beyond the traditional treasury remit is also a key requirement.
One of the most interesting challenges that many treasury and finance leaders are now facing is managing a cross-generational workforce, where inclusivity and leadership are paramount. In my view, it is not enough having technical excellence and knowledge or giving a functional response to an opportunity or issue. Instead, it is about working collaboratively beyond the function and engaging with an even more diverse workforce. This includes taking account of neurodiversity, as personal preferences and ways of working can vary significantly across generations.
I don’t think that we have really seen the much-promised technology revolution in treasury over the past few years. Yes, most companies now use some form of treasury technology, but spreadsheets are still very popular and so there are still huge opportunities to use the most advanced technologies further. This includes digital assets, cloud infrastructure and artificial intelligence delivering on-demand real-time information and services. Successful adoption of these technologies will lead to better management of cash, investment decisions, cheaper funding and reduced payment costs.
The role of the treasurer in environmental, social and governance (ESG) will also be key. Sustainable funding is growing fast, but there are other ESG-related issues around investments, counterparty risk management, supply chain finance and non-financial reporting where the treasurer can take a leading role and contribute to the ESG agenda in their organisation.
I have always loved financial risk management, the forward-thinking aspect of the role and the depth, breadth and complexity of the issues faced. Treasurers are responsible for large parts of the balance sheet and profit and loss account, making their role critical for many organisations.
Being part of the ACT for many years has been really rewarding. Treasury is a small and tight-knit community, which I have really enjoyed being part of. I have seen it develop significantly over recent times to become much more diverse and inclusive.
I believe that in this fast-changing world, treasury’s responsibilities are likely to evolve and expand further, reinforcing its role as a vital enabler of change. Treasurers will need to be very close to their business and be part of, as well as influence, the major change that their organisations go through. To achieve this, ensuring that the treasury team is relevant through training and education should be a priority, as success will be achieved by having the digital acumen, imagination and tools to bring together the many different stakeholders and resources in an ever-expanding business ecosystem.
And finally, I would say: be involved, be proactive, be bold – and don’t forget to have some fun along the way.
Yann Umbricht is head of treasury at PwC. He was speaking with Philip Smith, editor of The Treasurer
